Yet Another Suggestion

Hi All

I'm sorry for yet another one of those "Why don't we do this" kind of posts, but I'm thinking this might have merit here.

I was reading one of the economy threads before it got derailed, and Kazanture Aleixandre had an interesting proposal: /130/29/108595/1.html#post1051804. I think it bears repeating.

In essence, it's suggesting that we should let the market decide when there should be new money introduced in the economy. I think that's brilliant, frankly.

So, suppose we do this:
1) Every day, LL posts sell orders at some fixed rate, for example L$250/USD. (Maybe up to a maximum of 10% of the daily exchange volume)
2) New users don't get stipends.

So as far as I can tell, this seems to be a plan without drawbacks.
1) This should be a mostly safe way of adding the money, without adversely affecting the economy. Money is only added when the market demands it.
2) LL gets to make money by conjuring up L$, and selling it. They seem to like this idea.
3) People seem attached to their stipends. This way, those who really want to keep their stipends can. As SL grows (hopefully) the proportion of people getting discounted L$ will shrink. (Maybe it would be neat to even let people exchange their stipends for tiering)
4) Posting at a fixed rate (L$250/USD in this example) will add a stabilizing force to the market. Regardless of where the current exchange rate is, it should trend towards a nice stable number. Stability and predictability will help the economy grow.

Of course, this idea can be modified. But I think the general principle is sound - L$ is mainly added to the economy according to the demands of market forces.

What do you think? Are there any flaws with this idea? It seems like everybody wins.

There are basically two problems with it:

a) The users who protest about the falling L$ will probably protest if LL act to push the market up, no matter how low the market is at the time;
b) L$ cannot depend on selling L$ for any part of their regular income for the upkeep of SL, because that would require them to ensure their L$ would sell in a limited time-frame, thus putting them into exactly the same "undercutting" problem that content creators have.

The original message was advocating removing Premium stipends, which are a source of income for LL, so doing that would cause problems with b) above.

I believe that basically this is where they are headed, but are doing it in a slow migration approach rather than a big bang over night.

you know what I did some estimated calculations projected in the future, and i don't think there s any need to take any drastic steps to "correct" lindx. Lindx is fine, and market will determine the price.

In short, SL off course is in inflation, but not in rising rate of inflation rather the case is otherwise. We have a decreasing rate of inflation, and on presumptions (based on projected statistics) that SL hits 1M members in 1 Year from now, we would actually be having L$3000-4000 per capita money supply. (this is off course very raw estimate but good enough to give an idea). A L$3k or 4k per person inworld money by no definition is inflation.

From business angle, I understand that LL would be having a target membership of 2M at least, and that would be their apparent goal. Therefore, future is bright no need to panic, look at the broader picture and you d know what I am saying.

I thought Kaz's suggestion was sound, and I agree with Iron, I think this is where LL is slowly heading.